Denmark Plans to Impose World's First Carbon Tax

Denmark has taken another giant step forward in the fight against climate change: they will impose the world’s first carbon tax on livestock. 

Starting in 2030, Denmark will impose a tax on farmers based on the amount of greenhouse gases their cows, pigs, and sheep release through farts, burps, and dung, specifically methane. Carbon dioxide is commonly thought to be the driver behind climate change, but methane is one of the real instigators of the crisis. According to the United States National Oceanic and Atmospheric Administration, methane traps over 87 times more heat than carbon dioxide over a 20-year scale, making it highly potent– and it is the chemical that is released when animals fart, burp, and excrete waste. 

In 2030, farmers will be charged 300 Danish kroner ($43) per metric ton of emissions released by their livestock, and that tax will increase to 750 kroner ($108) by 2035. However, to ensure that agriculture-related businesses do not take a hit, the Danish government has offered a compromise in return: farmers will get a 60% income tax deduction. 

As a reference point, one Danish cow releases around 6 metric tons of greenhouse gases per year. After this deduction, the price per cow will decrease to 120 kroner ($17) per ton and increase to 300 kroner ($43) by 2035. Farmers will pay approximately 720 kroner ($103) per cow annually, rising to 1,800 kroner ($258) in 2035. There are around 1.48 million cows across Denmark. Also, this is just the price for cows– sheep and pigs will also be counted in the tax. 

This is part of Denmark’s goal to reach a carbon-neutral status by 2045, and this tax will help motivate farmers to find alternatives that can reduce the total emissions of their livestock. They also hope other countries will follow their new movement– Denmark is the first country to impose a carbon tax on livestock, but it probably won’t be the last.